Museums, Zoos and Parks

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 7,400 firms operating museums, zoos and parks in the US earn revenue from contributions, gifts, and grants (public and private sources); admission fees; investment income; and resale of merchandise. Museums preserve and exhibit objects of historical, cultural and/or educational value. Historical sites involve the preservation and exhibition of sites, buildings, forts, or communities that are related to events or persons of historical significance. Zoos exhibit animal life displays. Natural parks are natural areas designated for the enjoyment of the public.

Dependence on Donations

Museums, natural parks, zoos, and related organizations are highly dependent on contributions, gifts, and grants, which account for 35% of revenue.

High Value Exhibits

Many museums, zoos, and historical sites house valuable, sometimes irreplaceable, objects or animals.

Industry size & Structure

The average museum employs 19 workers and generates about $2.6 million annually. The average historical site employs 13 workers and generates about $1.2 million annually. The average zoo employs about 65 workers and generates about $7 million annually. The average natural park employs 13 workers and generates about $1.6 million annually.

    • The museum, natural park, and zoo industry consists of about 7,400 firms that employ about 172,000 workers and generate $17 billion annually.
    • The museum industry is fragmented; the top 50 companies account for about 45% of industry revenue. The historical site, zoo, and natural park industries are more concentrated, with the top 50 companies accounting for 60-66% of industry revenue.
    • Museums account for about 65% of industry revenue and 70% of firms. Zoos and botanical gardens account for 23% of revenue and 9% of firms. Historical sites account for 6% of revenue and 13% of firms. Natural parks account for 5% of revenue and 8% of firms.
    • Large organizations include the Smithsonian Institution, the Art Institute of Chicago, and the San Diego Zoo.
                                  Industry Forecast
                                  Museums, Zoos and Parks Industry Growth
                                  Source: Vertical IQ and Inforum

                                  Recent Developments

                                  Nov 23, 2024 - Employment, Labor Costs Up
                                  • Employment by museums, zoos, and parks increased 1.5% in October 2024 compared to a year ago, according to the US Bureau of Labor Statistics. Average wages for nonsupervisory employees at museums, zoos, and parks rose 5.4% in September 2024 year over year, reaching $24.01 per hour. Total revenue for museums, historical sites, and similar institutions grew year over year for the second consecutive quarter in 2024, reaching $6.4 billion in Q2 2024, according to the US Census Bureau. Revenue was up 2.2% year over year in Q2 and up 5.2% from the previous quarter. Consumer spending has also improved, rising 2.9% in August 2024 compared to a year ago and up 0.1% from the previous month, according to the Bureau of Economic Analysis.
                                  • A 2024 survey from the American Alliance of Museums (AAM) found that only half (51%) of museums have recovered to 100% or more of their pre-pandemic attendance levels or financial health. This is an improvement from 2023, when only a third of museums reported reaching pre-pandemic attendance levels. While charitable donations increased in 2024, a sustainability challenge remains with 61% of museums reporting the number of individual donors has stayed the same or decreased in the past five years. Predicting the significant disruptions to next year, nearly half of respondents expect shifts in philanthropy (48%) and financial/market instability (46%) followed by a reduction or elimination of government funding (33%). Four hundred museum directors responded to the survey conducted by Wilkening Consulting. According to AAM CEO and President Marilyn Jackson, “While museums strive to fill important gaps in their communities, they face significant challenges. The findings of this year’s report paint a clear picture that the museum field is still on the path to recovery from the impacts of the pandemic and will continue to be vulnerable to significant disruptions.”
                                  • Consumer confidence levels increased in October 2024, improving in all five components of the Consumer Confidence Index, according to The Conference Board. The index was 108.7 in October 2024 from 99.2 in September 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those between the ages of 35 to 54 and those in the income category of over $100,000. Per Peterson, “Consumer confidence recorded the strongest monthly gain since March 2021, but still did not break free of the narrow range that has prevailed over the past two years.” Plans to purchase homes and new cars rose on a six-month average basis.
                                  • According to a survey by Vox Media Insights and Research, nearly 90% of Gen Z and 87% of Millennials said that travel is a financial priority for them, which is more than other generations surveyed. The survey, done in conjunction with Thrillist and The Circus, surveyed 2,000 adults between the ages of 18 to 75. About 77% of Gen Z and Millennials surveyed said they selected travel experiences based on their personal interests, and not the destination. Of the travelers surveyed who plan to book a flight in the next year, 63% said they plan to purchase tickets or plan activities for that trip prior to buying a plane ticket. In addition, the younger generations are looking for a travel experience that is more than traditional sightseeing and tourism. About 84% of young people surveyed said they prefer destinations that are off the beaten path. Young travelers are also seeking personal growth during their trips. About three-quarters of Gen Z and Millennials said their travel experience says a lot about who they are, and 72% say traveling is core to their identity and part of how they express themselves. Museums, zoos, and parks may be able to increase visits by younger consumers by offering experiences that are unique, personal, and customizable, and not one-size-fits-all.
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